Audit Protection is a supplemental service that I offer to my clients in addition to tax preparation. Audit Protection guarantees that I will provide comprehensive representation before the IRS in the event that your tax return is audited or you are otherwise contacted by the IRS about the return. Audit Protection may only be purchased before your tax return is filed. It is important to understand that this is not a warranty or guarantee that your return will not be audited.
If my return was professionally prepared, why would it be audited?
There is a common misconception that the IRS only audits returns that they believe to be incorrect or somehow fraudulent, however that is not the case. A return can be selected to be audited at random to ensure compliance and accuracy. Even a return that is correctly filed and free of errors can be audited, which can be a time consuming and often frustrating process to navigate without professional support. A 2022 study conducted by the U.S. Government Accountability Office (GAO-22-104960) found that lower-income taxpayers claiming the Earned Income Tax Credit had a higher than average chance of being audited, as their returns are typically easier to audit and result in more tax revenue being recovered.
Why should I pay for Audit Protection up-front?
As noted previously, navigating an audit can be an extremely frustrating and time-consuming process. It may takes weeks, months, or even longer to resolve. It is an intimidating process to deal with as a professional, and even more-so if you are not familiar with the process. Typically my fee to represent a taxpayer before the IRS is $100/hr. It is not uncommon for an audit to require upwards of 10 hours of billable work, which can quickly amount to a sizeable bill for services. I offer Audit Protection to my clients so that they can rest assured that even in the worst case scenario, they won’t incur any additional expenses for my services and still get professional representation during the auditing process. Clients that opt not to pay for Audit Protection when initially filing their tax return may find the cost of representation to be prohibitively expensive when billed at my standard hourly rate.
How much does Audit Protection cost?
The standard fee for Audit Protection for an individual Form 1040 is $100, the same cost as one hour of billable representation. For business returns or returns that include a Schedule C, the price will vary based on the complexity of the return.
For a full explanation of what is included in Audit Protection, or for a quote for a business return, please reach out for a free consultation.